Strong corporate governance drives Wema Bank’s profit Q1
Wema Bank Plc has posted a profit before tax of N590.7 million in its first quarter financial result ended March 31, 2014 from a loss before tax of N853.4 million in March 2013, representing 169.2 percent increase.
The bank’s profitability is driven by her loyal stakeholders and a commitment to strong corporate governance and risk management frameworks.
The bank recorded operating income of N5.9 billion, an increase of 48 percent from N4 billion in March 2013. Also the bank’s net interest income stood at N4.26 billion, up 60 percent from N2.66 billion in March 2013, while non-interest revenue is N1.9 billion, up 33 percent from N1.4 billion in March 2013.
“We have continued to maintain our steady growth drive with focus on growing our top line income and commitment to cost reduction. This has resulted in a profit of N590 million in the period under review, having previously recorded a loss in the first quarter of 2013”, Tunde Mabawonku, chief financial officer of the bank, said in Lagos.
The bank’s income position is also improving with both interest and non-interest income jumping 60% and 33% year-on-year. With a cost of funds at 5.3% and a growing net interest margin of 7.7%, “we are maintaining the course of sustainable growth”, he said.
The improvement in earnings reinforces the bank’s growth potential and the efficacy of its medium-term strategic transformation plan, Project LEAP, which saw the bank return to full profitability in December 2013 and gain further market share.
“Our strategic transformation plan, Project Leap, aims to transform our position from a regional banking industry player to a prominent retail bank with national authorisation”, Mabawonku said.